All Forum Posts by: Jain P.

Thank you everyone for chiming in. This really helps. I am now convinced, that I indeed missed a good deal in CA, with negative cash flow(around 500 bucks per month). But I will take this as a good learning experience.

Thank you everyone for chiming in. Really happy to see experienced folks giving advise, and I hope to leverage it to my best.

@Manolo D. - Thanks for replying. Pls see my comments inline:-

1.)Well, I don't believe there is a difference between state calculators. I use a excel calculator downloaded from BP site. I just put in, the property tax based on the county here(1.25% of sale price), and rest all numbers are same across the entire country.

2.)I have scanned multiple properties in Bay Area, since few months, and I never saw it positive Cash-Over-Cash flow,  for 3-5-10-20% . I know it is a real test, but I wish it would have really worked. As other folks mentioned, they are looking outside Bay Area, as an option. Given I am a first time investor, I am more inclined to find properties locally, to build my confidence, instead of trying something remote, as my first deal.

3.)I am uploading a deal, which I was just about to finalize, but after doing calculations with BP excel calculator, I backed out of that deal. Note: This was brand new construction, with possession around early next year. The negative numbers scared me enough to drop out.

After looking it few more deals, I realize, that now i am comparing between properties which are less negative. I am just assuming negative cash flow is way of life here, so find the one, which is less negative overall :)

Suggestions/Advice is welcome. I am very brand new, and reading tons of blogs/books, to make my first ever deal. Hope to find something soon. :)

@Leslie Pappas - I was almost about to finalize a deal, and realized it goes cash flow negative. At that point, I backed out. As of today, i couldn't find COC in positive in CA. May be mostly due to the fact, that I am taking loan, and the investment loan has higher rate of percentage, and hence COC goes negative. Btw, Cap Rate is still positive, but around 2% , assuming I am doing full cash payment.

I was wondering , if I am the only one, having hard time finding 'positive cash flow' property in Bay Area(California). Or is this a fact, and known to everyone? 

Sorry, i am newbie to biggerpockets, so this question may sound very basic to everyone here. I just wanted to get people's opinion, that Bay Area properties are not for investment anymore, considering cashflow aspect?

I ran the biggerpocket calculator, and also did my own calculations, and most of the properties are running "Cash Flow Negative"